San Jose rejects CPI-based rent control, sticks with 5 percent cap

After hours of debate, the San Jose City Council on Tuesday rejected a proposal to begin basing its annual rent cap on the rate of inflation.

At the urging of CAA, the council instead voted 6-5 to maintain the city’s current 5 percent limit on annual rent increases.

The California Apartment Association attended Tuesday’s meeting in force, with members speaking against the proposal to base rent control on the Consumer Price Index. The CPI is now about 3.4 percent but fluctuates.

Extended its current policy on Ratio Utility Billing Systems, or RUBS, until March
The city’s 5 percent cap, on the other hand, provides a fixed, predictable limit, making it easier for owners and renters to budget for annual adjustments.

The council Tuesday also rejected a proposal to begin applying rent control to duplexes. The city’s rent control policy will continue to apply to multifamily rental units built before 1979.

Moreover, the council extended the existing policy on utility cost sharing (also known as Ratio Utility Billing Systems or RUBs) until March of next year, when it can be further studied.

The council’s decision to maintain current policies on RUBS and rent increases marks a significant victory for CAA and its members.

Rent Control in Words

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Say the words “rent control” to a property owner or tenant, and you’re sure to elicit an emotional response. Rent control has to be one of the most divisive terms in American housing policy. Most people either love it or hate it, but how many truly understand it? The California Apartment Association created WhatIsRentControl.com to answer basic questions about this controversial policy and to foster a deeper understanding of its impacts on California communities.

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